Banks Are Likely to Cut Post-Earnings Bond Sales as Costs Rise
- JPMorgan analysts don’t expect the usual issuance bonanza
- Bank of America, Morgan Stanley, Wells Fargo may bring deals
This article is for subscribers only.
The quarterly bank-bond boom is set to be a tamer affair this earnings season, with costs rising and the market’s biggest borrowers already ahead of their financing schedules.
“Issuance will underwhelm post-earnings results,” JPMorgan Chase & Co. credit analysts Kabir Caprihan and Nikita Dyatlov wrote in a note dated July 6. The earnings season kicked off Thursday on a sour note, with JPMorgan temporarily suspending share buybacks after disappointing results and Morgan Stanley reporting revenue from investment banking plummeted as capital markets seized up.